The Rector, Stars Maritime Academy; Dr. Reuben Ovai, in this chat with Shipping Position Daily spoke extensively on the need for government to address issues of sea time for Nigerian cadets who are studying locally and internationally. The Rector who also doubles as President, Association of Licensed Maritime Academies of Nigeria (ALMAN) told our correspondent Roland Ekama that the Federal Government should focus on how to re-float a national carrier.
What is your assessment of the maritime sector in the last six months of 2016?
It is obvious that the ports or better still the maritime sector is at zero level and there is no doubt about that; due to the federal government policies. There are less vessels coming into our ports, most of our berthing spaces are now empty and as a maritime nation, we need to work on how to derive the expected incomes if the ports are not functioning. Secondly, we are still selling our crude oil at Free On Board (FOB) and that is we are losing so much funds. Today every oil producing nation sell theirs on CIF, because it has a tripartite effect- meaning that there is need for acquisition of vessels and it also means that their citizens will be engaged on the vessels. Thirdly it enhances capacity in terms of income generation of their citizens; it will help in the training of the citizens as far as seafaring is concerned. For instance, issue of oil glut was a problem in the last six months, yet people will say Nigeria is the largest producer of oil yet she still imports fuel which is just like somebody who owns 100 hectares of land planting cassava yet is importing garri or fufu. We need to pray ourselves out of this curse; if really it’s a curse. Although within the first six months of the year there has been much noise about national carrier; even though I am an advocate of that, but the excuse that was made before by past administrators seems to be coming to play again. We believe that this present administration will make an amendment in reviving a national carrier for the country. If we have made mistakes before, that doesn’t mean we should close that chapter because God has blessed us as a maritime nation and as such we should make maximum utilisation of that opportunity by floating a national carrier that will rake – in income into the nation's purse. We are thinking of sources of earning foreign exchange and every vessel that comes into the country pays in foreign currency and if our own vessels are working they will also rake in same for the economy which as a result may not be dependent on oil of a thing; which is what we are doing today because the whole country depends of oil and anything that happens in that sector seems that the country is going back to square zero. The government should look into the policy that made the ports to be empty; there should be policy in place to re-activate the dockyards. Assuming foreigners are bringing in their ships to maintain at Nigerdock alone, it will bring huge foreign exchange for Nigeria. There are so many ways of utilising the sector to sustain the country and what we need is sincerity of purpose. It goes beyond appointing people we feel may deliver on the mandate assigned to them. What we need is to re-activate the maritime sector and now is the time. Talking about diversification, I will say this period the government can invest on fishing trawler to boost exportation of fish. With 100 crafts to be acquired by the government, it will boost export because those crafts will help to generate funds for government under fish export.
What is your view about how the national line can be revived?
Like I said earlier am an advocate of a national carrier and I strongly recommend a Public Private Partnership (PPP)basis, because we all know that government is not a good businessman which will give room for the private sector to create an edge to remove some of the anomalies from government protocol. Acquiring vessel is capital intensive and a viable national shipping line is the pride of every country and there is need for government to have its own input. I am not in support of government to hands off totally from reviving a national shipping line, rather invest more and later leave the shares for the private sector to subscribe. A typical example of that is happening at LNG and that company is functioning today because of the private participation in that venture , they are doing fine, they pay what belong to the government as at when due; therefore there is need to replicate such to the national shipping line. The minister had said that out of N50billion meant for CVFF, N13billion was wasted on land acquisition in Warri Delta State. How many ships can that figure give us? An idle fund cannot produce ships rather that fund was supposed to be invested for the purpose it was meant for in order for Nigerians to own ships. We expect the minister to utilise the remaining N37billion under CVFF positively in the quest to acquire national shipping line. Saying that private operators may misuse the fund is just a flimsy excuse, because if you know that a private shipping company will misuse this money, then don't give them the raw cash, but anyone that apply will contribute their own quota to the shipping company they want to acquire ships from and allow the vessel to be delivered.
What is the best way to address issues surrounding the creation of a national shipping line?
If you go back to history of the former national shipping line, you will agree with me that they started with second hand vessels, therefore the government can go to the market, buy between three to ten second hand ships for a start. Nigeria is even in the advantage today when you talk about fleets because we have the resources and tanker vessels, it will be in a better position for us to acquire considering the nature of our raw materials. We are missing so much opportunity in this industry. Exporting of crude oil is big business and if we have serious leaders to lead Nigerians then there is no need to export our crude. Government should just rehabilitate our refineries, then acquire more vessels and I can bet you that within West Africa alone we can make the foreign exchange that we require. We will have more than enough to export in the whole of West Africa. If we have ships then our crude oil or even the refined products will be carried to any part of the world where the product is needed using our vessels. The market is there, we have the raw materials, then what is the problem with us?. We need people who are sincere, we need people who will take the nation forward because the opportunities are there.
What is your view about the appointment of the new Director General of NIMASA?
With my experience in the field, I no longer listen to statement by politicians, rather I look out for actions and until I see your action is when I can begin to rate what you have said in line with the action taken so far, because over the years politicians have been appointed as far as the maritime sector is concerned to head various agencies of government with fantastic statements, but at the end of the day there is nothing to show for it. Therefore it is not new to say that another politician has been appointment to head NIMASA. From what he has been saying so far, I have not seen any of those statements translate to action. Through his appointment, the sector is yet to move an inch forward to another level? In this country we should be aware of the neighbouring countries reactions to our actions in terms of policy making in the maritime sector; whether we like it or not they look at the bad spot of our policy to make up their own policy in order to create divergent position to boost their own international trade. That our ports are not functioning properly does not mean people are not working rather it tells us that there is diversion of ships because if Nigeria says before you come into my port you have to pay $50 and our neighbour is standing by to collect $25 and a businessman is always looking for a cheaper means of doing business. Therefore people in power must aware of the policy they put in place to aid international trade.
What has been the current moves being made by the association to advance the course of maritime training?
In terms of the association we initially wrote some letters to the government informing them about our stand and readiness to contribute to the growth of the maritime industry. We often advocate for a round table conference, so that we can contribute our own quota to the upliftment of the sector. Hate it or love it, we are stakeholders in this sector and we will not like it to be in a tough form. If the sector is doing well, then good for everybody ,if the sector is booming there will be demand for professionals and we are the ones to groom those professionals, but if the sector is not doing well will also affect our services. There is need for a roundtable conference to address the situation at hand. We have written series of letters to NIMASA, yet no response and you can't force yourself on anybody on issues that will be of benefit to the sector.
Do you suppose the move by NIMASA to partner shipping line agencies in Nigeria to provide sea term experience for cadets?
No, I totally disagree. I am not in support of any move by government to pay shipping line agencies for sea time experience for cadets to go on board ships, because it is another waste pipe to be created by the government. Why can't we acquire our own vessels or call indigenous ship owners who are active and discuss how to help the cadets with sea time experience. It is better to partner with the indigenous ship owners than patronise the foreign shipping lines for cadets sea time experience. These are issues that we need to discuss in a round table conference or discourse on how cadets should be absorbed for sea time because it is getting out of hand.
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